The US dollar remained in a gloomy mood against the Euro starting from the opening of the beginning of the week until Tuesday yesterday.
After showing poor performance, the US dollar recovered slightly with the release of some positive economic data from the United States (US).
Durable goods order data recorded high figures for May, in addition to US consumer confidence data and retail sales also showed encouraging readings.
This slightly hinders the strengthening momentum of the Euro which still has room after the European central bank (ECB) still maintains its hawkish stance on monetary policy.
Price movements are translated on the EUR/USD currency pair chart with yesterday's daily gain of around 70 pips shown.
The price that began to move above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/USD chart in the Asian session yesterday continued to rise, continuing into the European session reaching 1.09750.
However, after the data was published, prices retreated slightly and leveled off before closing the end of the New York session around 1.09600.
If the price still maintains the upward pattern after this, the price increase is expected to touch the important level of 1.10000 again.
The resistance level reached last week will be tested again before the price can record the latest 7-week high with the target moving up to 1.12000.
However, if the strengthening of the US dollar is more significant, the price is likely to be pushed down past the MA50 support and the 1.09000 level.
After assessing the bearish movement signals, investors will be ready for a drop in price towards the 1.08000 concentration zone after breaking through the lows reached last week.
The focus will now be on the ECB forum attended by key central bank governors including Christine Lagarde and Jerome Powell.
Any indication of central bank monetary policy could affect both the Euro and the US dollar.
